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Tom, these are the work for my two class mates Felicia and Julia. Insert them appropriately according to the order of the slides that they chose and subject rank.

Financial Plan Presentation

Eugenie Attila, Julia Egbuna, & Felicia Tinsley

The Financial Plan Development

Statement of Revenue and Expenses

Statement of Income

Balance Sheet

Nursing Statistics

Patton-Fuller Community Hospital(PFCH) uses the financial development plan to make recommendations for the hospital. The main components of the financial statement are revenue and expenses, income, and balance sheet. According to the statement of revenue and expenses PFCH had and increase of 3% in net patient services and other revenue from 2009 to 2010. The excess of medical inventory provided and increase in the supply expenses and accounts receivable. By controlling the inventory this will allow improvement in the organizations areas of investment.

The balance sheet provides information regarding the increase of expenses related to capital investments based on depreciation and amortization. Each capital investment is assigned a value, cost and age. The increase is due to the purchase of new equipment not in use currently or inaccuracies in the reporting of the investments.

The statistics report provides information regarding the nursing ratios and the daily net revenues accrued from patient visits. From the chief financial officer a comparison was made based on an increase in pay of the existing staff and additional expenses associated with the increase. The other estimate was to look at the nurse to patient ratio from 5:1 to 4:1 and how this would affect daily revenues.

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Revenue Trends that Affect the Hospital

“Patton-Fuller Community Hospital 80% of its revenue from inpatient activity and the remaining 20% is from outpatient services”.

Inpatient Activity

Sugery charges

Medical-surgical nusing

Intensive Care Unit (ICU)

Outpatient Activity

Emergency Department

Outpatient services

Sources of revenue are from patient care services, return on investments, philanthropic donations, and interest earned on cash accounts. Services provided for patient care are provided by in-patient, out-patient and emergency care services. The net revenue was reported at $459,900 for 2009. Some of the trends that affect the flow of revenue are census changes in patient loads during certain seasons. Managed care contract settlements which allow for later reimbursement time, to increase the total amount form reimbursements.

Return on investments is down due to the decrease in the stock market, and real estate values. The downward market trends has decreased the investment income, and has caused a reassessment of the investments value. Other revenue is generated from the management of accounts payable. When bills are paid on time toward the end of repayment versus the beginning allows cash reserves to stay in the bank and interest is accrued. This then provides an additional source of revenue.

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References

Apollo Group, Inc. (2013). Patton-Fuller Community Hospital. Virtual Organizations. Retrieved from HCS/577-Financial Management in Health Care https://ecampus.phoenix.edu/secure/aapd/cist/vop/Healthcare/PFCH/docs/NursingOptions.pdf

Gapenski, L. C. (2012) Healthcare finance: An introduction to accounting and financial management. (5th ed.).Chicago, IL: Association of University Programs in Health Administration.

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